Wait for late arrivals

PATIENT buyers are the key as Toyota and its distributors recover in the wake of the Japanese earthquake and tsunami.

On the Sunshine Coast demand is outstripping supply but to date buyers have shown a willingness to place forward orders and wait.

Brett Mills, of Ken Mills Toyota, said yesterday production at Toyota factories worldwide had been wound back to between 30% and 50%, with Victoria’s Altona plant running at 40%.

He said the primary reason for the reduction in capacity had been the destruction of one electronics company in Japan that produced ECU chips for Toyota and other manufacturers.

Toyota is seeking to source product elsewhere but that will take time. There has also been a concerted push in Japan – because of Toyota’s role in the economy – to get the electronics company back in operation. Some 2000 workers have been drawn in for that purpose.

Mr Mills said as a consequence the outlook was more optimistic than it was two to four weeks ago with hopes now that production rates would increase in July.

Queensland distributors met with Toyota representatives in Brisbane last week for an update on the situation.

“May was the first month that impacted on new vehicle delivery compared with normal volumes,” Mr Mills said.

“We received less than half what we would normally expect to deliver in May.

“The market is slightly better this year than last but it’s off numbers for 07, 08 and 09.

“In the third week of May Toyota will announce its capacity for June and we expect the news to be positive.”

Mr Mills said what needed to be understood was that of the 93 companies that supplied Toyota in Japan, 20 had CEOs who have been listed as missing following the tsunami and earthquake.

He said the natural disaster had caused a terrible loss of life and done enormous damage.

“Our biggest frustration has been that we can see cars in the supply pipe but they can’t say when they will be delivered,” he said.

“We have a number of customers with forward orders. People have been good about the situation. They understand what has happened and are happy to wait.